Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.


Sign in to follow this  

What you need to know about Student loans and the Covid-19 pandemic.

Recommended Posts


Checked mine today for giggles.
$26 auto payment processed on the 27th as usual. Interest rate does reflect 0%

That’s what I’m talking about. That interest helps a little bit. Congrats


Sent from my iPhone using Tapatalk

Share this post


Link to post
Share on other sites

From NAVIENT

I'll just drop this here

Quote

On March 27, 2020, the president signed the CARES Act, which, among other things, provides broad relief in response to the coronavirus disease 2019 (COVID-19) for federal student loan borrowers whose loans are owned by the U.S. Department of Education (ED). As your federal loan servicer, we are contacting you to explain how this law affects your federally owned loans that we service for ED.

WHAT YOU NEED TO KNOW

First, it's important to understand that the provisions of the CARES Act that affect federal student loans are temporary. The changes to your federal student loans that we explain in this communication will end Sept. 30, 2020.

In addition, the interest rate and status changes apply only to your federally owned William D. Ford Federal Direct Loan (Direct Loan) Program, Federal Family Education Loan (FFEL) Program, and Federal Perkins Loan (Perkins Loan) Program loans. If you have other federal student loans that are not owned by ED and/or have private loans, you'll need to contact the servicers of those loans to discuss potential relief options.

We've taken the following actions on the federally owned loans we service for you:

• 0% Interest Rate - We changed the interest rate on the loans to 0% for the period March 13, 2020, through Sept. 30, 2020. During this period, you will not be charged interest on your loans.

• Administrative Forbearance - We placed the loans identified in an administrative forbearance for the period March 13, 2020, through Sept. 30, 2020. During this period, you will not be required to make monthly payments on your loans. If your payments are made through auto debit, those debits will not occur while the forbearance is in place. We will report you as current to credit reporting agencies.

Although you will not be required to make monthly payments during this specific administrative forbearance period, payments you would have been required to make between March 13, 2020, and Sept. 30, 2020, will count toward loan forgiveness provided all other qualifying factors are met.

Note: If you choose to make payments during the administrative forbearance period, you may do so; however, you'll need to make those payments manually (not through auto debit). Given the 0% interest rate explained above, any payments you make during the March 13, 2020, through Sept. 30, 2020, period will be applied to paying down the principal amount of your loans after accrued interest from other periods has been resolved.

WHAT YOU NEED TO DO

Keep this notification for your records. We'll communicate with you in August to help prepare you for Sept. 30, 2020, when the 0% interest rate and administrative forbearance period ends.

There's no other action you need to take, unless you want to opt out of the administrative forbearance we've placed on your account. If you opt out, we'll remove the administrative forbearance and you'll be required to make monthly payments. Unless you want to continue making payments through auto debit, there is no advantage to you by opting out of the administrative forbearance. The 0% interest rate will remain in effect, and you will not be charged interest through Sept. 30, 2020, whether the forbearance remains in effect or not.

To opt out, let us know through one of the options described below in the section, "HOW TO CONTACT US."

• If you change your mind after opting out, you can simply request that your loans be placed in the administrative forbearance again. Contact us through one of the options described below in the section, "HOW TO CONTACT US."

• If you opt out and become more than 30 days late in making a required monthly payment, we'll place your loans in the administrative forbearance again.

 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




  • Today's Birthdays

    1. Mikki01
      Age: 48
  • Member Statistics

    • Total Members
      178,812
    • Most Online
      2,046

    Newest Member
    dreaded34
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines